Public Capital in the 21st Century
|
|
- Lionel Young
- 6 years ago
- Views:
Transcription
1 SCHOOL OF BUSINESS AND ECONOMICS SE Journal RESEARCH ESSAY NO. 2 NOVEMBER 2014 Public Capital in the 21st Century Giacomo Corneo Giacomo Corneo is Professor of Public Finance and Social Policy at the Free University of Berlin. Previously he taught at ENPC in Paris, the University of Bonn, and the University of Osnabrück. Since 2004, he has been managing editor of the Journal of Economics. He also serves as associate editor of the International Review of Economics. Furthermore, he is a Research Fellow of CEPR in London, CESifo in Munich, and IZA in Bonn. ABSTRACT The increase of income and wealth concentration threatens the European project of a good society. Capital taxation alone cannot stop this process, but a combination of moderately higher capital taxes and a novel role of public capital will do. The governance of public capital requires carefully designed institutions: a sovereign wealth fund and a special public investment agency called Federal Shareholder.
2 2 SCHOOL OF BUSINESS AND ECONOMICS INTRODUCTION Real, participatory democracy, a dynamic and pluralistic market economy and a fair and generous social welfare system: these are the three cornerstones for building the good society desired by the great majority of the population. But today this ambitious social project hangs in the balance. As a result of the growing concentration of economic power, the capitalistic logic of the dominance of money is now starting to seep through from economics into politics and morality. Democracy is gradually degenerating into plutocracy, the market economy into a gambling casino, and the welfare state into a poorhouse. No wonder reformers are increasingly asking themselves how this encroachment of capitalistic power can be curbed. The recent book by the French economist Thomas Piketty Capital in the 21st Century, has had a major impact on the current debate and excited a great deal of interest. In order to break the mechanisms that lead to an increasing concentration of incomes and wealth, he argues the need for aggressive action on the fiscal policy front. His prescription: the taxes on capital should be increased to a level where the gap between the after-tax return on capital and GDP growth rate is closed. However, a tax-based reform strategy of this kind is problematic for a number of reasons. For one thing, nobody wins elections by promising massive tax increases even if these taxes are payable only by the very rich. For another thing, high taxes on capital are ineffective in the absence of international coordination, because capital can simply move to another country with lower rates of tax. The supporters of higher taxes on capital in Europe have been trying for many years to bring about coordination, but so far without success. And admirable as their efforts are, we should not delude ourselves that they are likely to succeed any time soon. There is an even more fundamental objection to Piketty s plan: even if the political conditions for the implementation of his proposed tax offensive were met, it is doubtful whether it would have the desired economic impact. The problem lies in the scale of the tax increases that would be required. Given a return on capital of 6% and a growth rate of 1.2%, the tax rate on the return on capital would have to be around 80% in order to achieve the results envisaged by Piketty. Under a progressive taxation system the rates of tax for very wealthy taxpayers would be even higher. But such high rates of tax are likely to have such a disincentive effect on investment and entrepreneurial initiative that technology development and productivity growth would suffer badly in consequence. And this in turn would put the general prosperity of our society at risk. THE ROLE OF PUBLIC CAPITAL If taxes on capital are not the answer, it does not mean that we have to roll over and accept the economic divide within society. Instead logic suggests the following conclusion: the desired redistribution of wealth needs to happen before the taxman takes his cut, i.e. when the capital income is distributed. In other words, the shortcomings of taxes on capital are an argument for developing a new role for the public ownership of capital. The income from public capital could be divided equally among all citizens through a social dividend, which would help to counteract the increasing concentration of income. And unlike massive tax increases, enhancing the status of public ownership has the potential to unlock positive emotions, foster an ethos of solidarity and attract broad political support. So how would that work? Let us start with the formation of public capital. Public capital can be accumulated by the state in the form of equities acquired through market transactions. The state should finance its stock purchases by issuing government bonds. In the case of a solvent state like Germany, financing costs are very low, so that only a small part of
3 Public Capital in the 21st Century 3 UNLIKE MASSIVE TAX INCREASES, ENHANCING THE STATUS OF PUBLIC OWNERSHIP HAS THE POTENTIAL TO UNLOCK POSITIVE EMOTIONS, FOSTER AN ETHOS OF SOLIDARITY AND ATTRACT BROAD POLITICAL SUPPORT the income from the stocks would be needed to cover them. If for example the rate of return on equities is 6-9% and the interest paid on government bonds is 1-1.5%, one-sixth of that rate of return is sufficient to cover the government s refinancing costs. The rest of it should then be prioritized for paying down the debt incurred to purchase the equities. After fifteen years or so the new borrowing for the formation of public capital would have been repaid, and the polity would have collective ownership of debt-free assets in the form of worldwide-diversified stocks. The equities in public ownership would then effectively be a collective capital investment by the citizens. Because of the opportunities for diversification and the fact that any taxes on capital would be collected by the state, this investment would over the long term yield an above-average return on capital for the state. This would mean that even those who have no private means of their own would share in the highest capital returns, since every citizen is an equal shareholder, through the state, in stateowned investments. SOVEREIGN WEALTH FUND In the initial phase, responsibility for managing public capital should rest entirely with a sovereign wealth fund (SWF). There are at present over fifty SWFs worldwide, i.e. state-owned financial vehicles that manage public funds. Generally speaking they operate like passive investors or collective rentiers, which seek to secure high rates of return by making appropriate portfolio decisions, without assuming control of business enterprises. Setting up a SWF would require a suitable institutional framework, such as the one adopted for the Norwegian SWF Government Pension Fund Global. Notable aspects of the Norwegian arrangement are its high degree of transparency and conspicuous political independence. The market value of Norway s SWF is currently around 170% of the country s GDP. Even if the return on capital is rather less than average, a fund of this magnitude is able to make a substantial contribution to the national budget. Indeed, substantially less than the total return on capital has normally been transferred to the public purse hitherto, with the result that the Norwegian SWF has grown strongly over the years. The proposed SWF should invest most of its capital in a diversified international share portfolio. Its task would be to maximize long-term returns, which would then be allocated to the national budget. It is important to understand the scale of the effects that can be achieved. If for example the value of the SWF amounts to only 50% of GDP, and equity returns equal 9%, the long-term boost to state income is equivalent to 4.5% of GDP. That represents nearly the whole of Germany s public spending on education. This shows that a sovereign wealth fund can be an effective instrument of redistribution. Through the socialization of the equity risk premium it can take over part of the (re)distributive function of the taxation system. In this way the aim of limiting inequality can be achieved without imposing
4 4 SCHOOL OF BUSINESS AND ECONOMICS the punitive rates of tax that result from the application of Piketty s prescription. FEDERAL SHAREHOLDER The establishment of such a state investment fund would only be the first step in a program aimed at curbing the excessive power of capitalism. The central argument for preventing a high concentration of wealth is the danger that the political system could degenerate into a plutocracy. Large corporations and banks, and the lobbies that represent them, are the key instruments used by members of the moneyed elite to coordinate their endeavours and foster their interests in the political arena. If the state were only to own a few shares in these corporations but not exercise any power of control, the excessive influence of the moneyed elite on political decision-making would go largely unchecked. A strategy for rejuvenating democracy therefore needs to incorporate a second stage in which the body politic challenges the capitalists on their own ground in order to contest their control over big business. Looking ahead, this contest could initiate a transition to a form of market socialism an economic system in which all the large corporations and banks are embedded in a public-democratic governance while private-capitalistic initiative is limited to small and medium-sized enterprises. An essential requirement for ensuring fair competition between public-democratic and private-capitalistic enterprises is the creation of an institution that will motivate the management of public-democratic enterprises to achieve the best possible business outcomes. I have coined the term Bundesaktionär [ Federal Shareholder ] to refer to this public investment agency (Corneo, 2014). Initially the Federal Shareholder would control a small number of large corporations. It would own a majority capital share (fixed at, say, 75%) in these companies. These shares would be frozen in state ownership, and under the terms of the law on stock corporations the public investment agency would exercise a controlling and monitoring function on the supervisory boards of these companies through its own personnel. Dividend payouts would go to the state, which could use them to fund a social dividend. The public investment agency would be tasked with a clear objective: to maximize the long-term profitability of the corporations under its control, and with it the long-term profit income of the state. In pursuing this objective it should remain completely independent of the government of the day in much the same way as the Bundesbank in Germany is independent of the federal government. The political independence of the public investment agency would be guaranteed by constitutional norms. Such an institution would require well-trained specialist personnel capable of devising their own solutions to problems they encounter in the course of carrying out their duties. It should aim to be a centre of excellence for issues of corporate governance, investment analysis, financing THERE IS QUITE A GOOD CHANCE THAT A MIXED OR WHOLLY PUBLIC- DEMOCRATIC FORM OF GOVERNANCE FOR LARGE CORPORATIONS AND BANKS WILL ULTIMATELY TURN OUT TO BE THE BEST
5 Public Capital in the 21st Century 5 and risk management. It should offer its staff interesting long-term career prospects and foster a sense of belonging and of mission. Private ownership of a minority share (e.g. 25%) in the public-democratic corporations has an important part to play in creating an effective incentive structure. Since private-sector stakeholders are free to buy and sell shares in the public-democratic corporations, the share price would reflect the market view of how well the management of these enterprises is performing. Rather as with today s share option schemes, the information contained in the movement of share prices can be used to encourage managers to pursue profit maximization. Furthermore, associations of private shareholders would constitute influential interest groups which could put pressure on the managements of the public corporations to operate as profitably as possible. A duty of transparency on the part of the public investment agency would ensure that its employees did indeed perform their proper function and maximize the long-term profitability of the public-democratic corporations. Under the supervision of an existing authority (e.g. the Bundesbank or Federal Ministry of Finance) the public investment agency would publish the financial results of the companies under its control and the relevant benchmark groups of companies. A portion of the remuneration paid to its staff would be performance-related, i.e. dependent on the relative performance of the companies under their control. To ensure that the maximization of company profits is good for the economy as a whole, it should not be pursued at the expense of the company employees or consumers or to the detriment of the environment; it should be the result of increased production efficiency and successful product innovations. The regulations designed to safeguard employees, consumers and the environment therefore need to be rigorously formulated and strictly observed, which calls for further transparency. In addition, the public-democratic corporations should seek to revive the role of worker participation and foster a sense of solidarity among their employees. The level of worker participation in capitalistic enterprises is inefficiently low, and greater worker involvement could increase productivity. Public ownership would encourage employees to identify more closely with the companies they work for, and opening up new opportunities for employees to have a say in the running of the business would ultimately push up both wages and corporate profits. We cannot know today how well such public-democratic corporations would function in comparison with capitalistic enterprises. We should therefore not tie ourselves down at this stage to a specific ownership structure for large corporations and banks, but allow it to emerge as the result of a collective learning process extending over a number of years. Once the Federal Shareholder has been established and the first corporations placed under its control, a market-driven selection process will follow. Given a level playing field where both forms of governance (democratic and capitalistic) can compete openly on even terms, their relative efficiency will lead in time to an optimized ownership structure. The more profitable sector will expand and the other will shrink, until the most efficient distribution is arrived at. In the course of this process the better-managed companies will be more profitable, and the higher returns they offer will mean that their shares are more in demand; consequently more capital will flow into the better-managed companies, and their market share will grow. Capitalistic enterprises are not as efficient as the guardians of the status quo would like to believe: sometimes they are run by incompetent heirs, occasionally they are raided by their own managers and they are reluctant to give their employees a say in the running of the business. So there is quite a good chance that a mixed or wholly public-democratic form of governance for large corporations and banks will ultimately turn out to be the best.
6 6 SCHOOL OF BUSINESS AND ECONOMICS CONCLUSION The belief that public ownership of capital could become a mainstay of the new European model for the 21st century is by no means far-fetched. Such an evolution would not present major difficulties for countries with a high financial standing like Germany. Unlike the strategy proposed by Piketty for high taxes on capital, any single country can go it alone, embarking on the formation of public capital in its own time and thereby reducing inequality within its own borders. For EU countries, of course, care must be taken that such a strategy is consistent with existing public-debt rules. And while international coordination is not necessary, the creation of a sovereign wealth fund for the Eurozone might be a promising way to strengthen the sustainability of public finances. Finally, it should be noted that enhancing the status of public ownership presupposes a new respect for the values of democracy and public service. In societies where democracy is eroded by lobbyism and political bribery, and those who serve the state are demotivated and lacking in competence, public capital would be a recipe for economic disaster. So if the strategy outlined above is to succeed, measures must be put in place to ensure greater transparency, a greater degree of direct civic participation and more efficiency in the conduct of public affairs. REFERENCES Corneo, G Bessere Welt. Vienna: Goldegg Verlag. Piketty, T Capital in the Twenty-First Century. Cambridge MA: Harvard University Press.
Two Cheers for Piketty
September 2014 Two Cheers for Piketty John Stutz Capital in the Twenty-First Century By Thomas Piketty The Belknap Press of Harvard University, 696 pp. Thomas Piketty s Capital in the Twenty-First Century
More informationSpeech for the Financial Press Conference On February 21, 2008 in Munich. Good Morning Ladies and Gentlemen,
MICHAEL DIEKMANN Speech for the Financial Press Conference On February 21, 2008 in Munich The spoken word prevails. Good Morning Ladies and Gentlemen, I would like to welcome you to our Financial Press
More informationTaxation of High Net Worth Individuals (HNWIs)
Taxation of High Net Worth Individuals (HNWIs) 2 nd ATRN Congress, Seychelles Dr. Barbara Dutzler 07/09/2016 GFG in Africa Seite 1 Agenda 1) Why to tax HNWI 2) How to tax HNWI 3) How to boost compliance
More informationTax Havens: A Guided Tour Interview with Gabriel Zucman
Tax Havens: A Guided Tour Interview with Gabriel Zucman Thomas VENDRYES What sums of money are hidden in tax havens? By whom? And how? Using original methodology and data that has not yet been fully utilized,
More informationCapital in the 21 st century
Capital in the 21 st century Thomas Piketty Paris School of Economics Lisbon, April 27 2015 This presentation is based upon Capital in the 21 st century (Harvard University Press, March 2014) This book
More informationEthics and Sovereign Wealth Fund Investing
Ethics and Sovereign Wealth Fund Investing Walt Schubert La Salle University and Qatar University Les Barenbaum La Salle University This paper focuses on the ethical investing dilemma face by Sovereign
More informationThe Greek crisis and the European Stability Mechanism (ESM) Abstract The financial crisis of is considered by many economists to be the
The Greek crisis and the European Stability Mechanism (ESM) Abstract The financial crisis of 2007 2008 is considered by many economists to be the worst financial crisis since the Great Depression of the
More informationec nfip Economists for Inclusive Prosperity
ec nfip Economists for Inclusive Prosperity RESEARCH BRIEF September 2018 Taxing multinational corporations in the 21st century Gabriel Zucman 1 Globalization and the rise of intangible capital have increased
More informationPUBLIC CONSULTATION ON PERMIT GRANTING PROCEDURES - CONSULTATION DOCUMENT - BACKGROUND
PUBLIC CONSULTATION ON PERMIT GRANTING PROCEDURES - CONSULTATION DOCUMENT - BACKGROUND The Energy Infrastructure Package Adequate, integrated and reliable energy networks are a crucial prerequisite not
More informationPAYING FOR THE HEALTHCARE WE WANT
PAYING FOR THE HEALTHCARE WE WANT MARK STABILE 1 THE PROBLEM Well before the great recession of 2008, Canada s healthcare system was sending out signals that it had a financing problem. Healthcare costs
More informationTHE SOCIAL RESPONSIBILITY OF BANKS AND OTHER FINANCIAL INSTITUTIONS TOWARDS SMALL BUSINESSES
THE SOCIAL RESPONSIBILITY OF BANKS AND OTHER FINANCIAL INSTITUTIONS TOWARDS SMALL BUSINESSES By Dr Francis Neshamba Senior Lecturer in Enterprise Development Africa Centre for Entrepreneurship and Growth
More informationThe Impact of Globalisation on Systems of Social Security
The Impact of Globalisation on Systems of Social Security prepared for the 9 th NISPAcee Annual Conference: Government, Market and the Civic Sector: The Search for a Productive Partnership (Working group
More informationTHE KOSTYUK REPORT: EXECUTIVE COMPENSATION PRACTICES IN UKRAINE
THE KOSTYUK REPORT: EXECUTIVE COMPENSATION PRACTICES IN UKRAINE Alexander Kostyuk* Abstract The main research question of this research is: "Does an ownership structure influence performance of executive
More informationOvercoming America's Infrastructure Deficit
No. 40A, May 1998 Overcoming America's Infrastructure Deficit S Jay Levy and Walter M. Cadette Citizens chronically complain about dilapidated school buildings, condemned highway bridges, contaminated
More informationSTRUCTURAL REFORM REFORMING THE PENSION SYSTEM IN KOREA. Table 1: Speed of Aging in Selected OECD Countries. by Randall S. Jones
STRUCTURAL REFORM REFORMING THE PENSION SYSTEM IN KOREA by Randall S. Jones Korea is in the midst of the most rapid demographic transition of any member country of the Organization for Economic Cooperation
More informationStatement by the IMF Managing Director on The Role of the Fund in Low-Income Countries October 2, 2008
Statement by the IMF Managing Director on The Role of the Fund in Low-Income Countries October 2, 2008 1. Progress in recent years but challenges remain. In my first year as Managing Director, I have been
More informationFISCAL AND FINANCIAL DECENTRALIZATION POLICY
REPUBLIC OF RWANDA MINISTRY OF LOCAL GOVERNMENT, GOOD GOVERNANCE, COMMUNITY DEVELOPMENT AND SOCIAL AFFAIRS AND MINISTRY OF FINANCE AND ECONOMIC PLANNING FISCAL AND FINANCIAL DECENTRALIZATION POLICY December
More informationDr Andreas Dombret Member of the Executive Board of the Deutsche Bundesbank
Dr Andreas Dombret Member of the Executive Board of the Deutsche Bundesbank Looking to the future What comes next in terms of European financial integration? Speech at the South African Institute for International
More informationIn 2012, the existence of the European Monetary
CURRENT HISTORY March 2013 A major challenge for policy makers lies in the fact that they may have to move forward with a deepening of integration at a time when the EU and the euro area confront a growing
More informationInequality, Public Wealth, and the Federal Shareholder
IZA Policy Paper No. 115 P O L I C Y P A P E R S E R I E S Inequality, Public Wealth, and the Federal Shareholder Giacomo Corneo October 2016 Forschungsinstitut zur Zukunft der Arbeit Institute for the
More informationTable 4.1 Income Distribution in a Three-Person Society with A Constant Marginal Utility of Income
Normative Considerations in the Formulation of Distributive Justice Writings on distributive justice often formulate the question in terms of whether for any given level of income, what is the impact on
More informationINTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS
INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS ISSUES PAPER ON GROUP-WIDE SOLVENCY ASSESSMENT AND SUPERVISION 5 MARCH 2009 This document was prepared jointly by the Solvency and Actuarial Issues Subcommittee
More informationObviously, moving to a system of land value tax and allowing it to displace other taxes will cause some
8. A strategy for introducing a system of land value tax in Britain Obviously, moving to a system of land value tax and allowing it to displace other taxes will cause some disruption. But much can be done
More informationBangkok. Well first of all I d like to personally recognise the work that Dr Akhtar has done to pursue the inclusive prosperity agenda for ESCAP.
1 Remarks ESCAP 4 th High Level Dialogue Bangkok Well first of all I d like to personally recognise the work that Dr Akhtar has done to pursue the inclusive prosperity agenda for ESCAP. The quality of
More informationThe role of regional, national and EU budgets in the Economic and Monetary Union
SPEECH/06/620 Embargo: 16h00 Joaquín Almunia European Commissioner for Economic and Monetary Policy The role of regional, national and EU budgets in the Economic and Monetary Union 5 th Thematic Dialogue
More informationServing Shareholders Doesn t Mean Putting Profit Above All Else
Serving Shareholders Doesn t Mean Putting Profit Above All Else https://hbr.org/2017/10/serving-shareholders-doesnt-mean-putting-... SOCIAL RESPONSIBILITY Serving Shareholders Doesn t Mean Putting Profit
More informationIrma Rosenberg: Assessment of monetary policy
Irma Rosenberg: Assessment of monetary policy Speech by Ms Irma Rosenberg, Deputy Governor of the Sveriges Riksbank, at Norges Bank s conference on monetary policy 2006, Oslo, 30 March 2006. * * * Let
More informationCapital Markets Union in Europe: an ambitious but essential objective
Capital Markets Union in Europe: an ambitious but essential objective Benoît Cœuré Member of the Executive Board of the ECB Presented at a conference "The European Capital Markets Union, a viable concept
More informationHow can we improve outcomes for investors in investment funds?
Date: 16 November 2016 ESMA/2016/1579 How can we improve outcomes for investors in investment funds? EFAMA Investment Management Forum, 16 November 2016, Brussels Steven Maijoor ESMA Chair Ladies and gentlemen,
More informationResolution INVESTING IN YOUTH: FIVE CLEAR DEMANDS IN THE CRISIS
Resolution INVESTING IN YOUTH: FIVE CLEAR DEMANDS IN THE CRISIS ADOPTED BY THE COUNCIL OF MEMBERS/ EXTRAORDINARY GENERAL ASSEMBLY BRAGA, PORTUGAL, 17-20 NOVEMBER 2011 1 COMEM Introduction While the unprecedented
More informationThe Role of Sovereign Investment Vehicles in the GCC
Workshop 12 The Role of Sovereign Investment Vehicles in the GCC Workshop Directors: Juergen Braunstein Postdoctoral Fellow Harvard Kennedy School Belfer Center United States of America Email: juergen_braunstein@hks.harvard.edu
More informationWhat Have We Learned About Taxation, Statebuilding and Accountability?
www.ictd.ac Number 4 What Have We Learned About Taxation, Statebuilding and Accountability? Wilson Prichard The past decade, in particular, has in theory, their application in practice is witnessed surging
More informationWealth and Welfare: Breaking the Generational Contract
CHAPTER 5 Wealth and Welfare: Breaking the Generational Contract The opportunities open to today s young people through their lifetimes will depend to a large extent on their prospects in employment and
More informationBuilding bridges for growth. Viewpoint from Davos David Sproul, Senior Partner and Chief Executive
Building bridges for growth Viewpoint from Davos David Sproul, Senior Partner and Chief Executive Building bridges for growth Trust, or the lack of it, between business, government and the public is now
More informationNBER WORKING PAPER SERIES GLOBAL INEQUALITY DYNAMICS: NEW FINDINGS FROM WID.WORLD
NBER WORKING PAPER SERIES GLOBAL INEQUALITY DYNAMICS: NEW FINDINGS FROM WID.WORLD Facundo Alvaredo Lucas Chancel Thomas Piketty Emmanuel Saez Gabriel Zucman Working Paper 23119 http://www.nber.org/papers/w23119
More informationthe debate concerning whether policymakers should try to stabilize the economy.
22 FIVE DEBATES OVER MACROECONOMIC POLICY LEARNING OBJECTIVES: By the end of this chapter, students should understand: the debate concerning whether policymakers should try to stabilize the economy. the
More informationInequality and Social Mobility. Econ 101
Inequality and Social Mobility Econ 101 Much of the following is taken from Capital in the Twenty-First Century by Thomas Piketty Special Thanks Key Concepts Wealth (stock, savings) Inequality The richest
More informationCOMMISSION STAFF WORKING PAPER. Executive summary of the IMPACT ASSESSMENT. Accompanying document to the COMMISSION RECOMMENDATION
EUROPEAN COMMISSION Brussels, 18.7.2011 SEC(2011) 907 final COMMISSION STAFF WORKING PAPER Executive summary of the IMPACT ASSESSMENT Accompanying document to the COMMISSION RECOMMENDATION on access to
More informationReforming the Transmission Mechanism of Monetary Policy in China
Reforming the Transmission Mechanism of Monetary Policy in China By Wang Yu*, Ma Ming* China's reform on the transmission mechanism of monetary policy has advanced dramatically, especially since 1998,
More informationResearch Note #3 SOCIAL IMPACT BONDS
Research Note #3 SOCIAL IMPACT BONDS Research Note #3 SOCIAL IMPACT BONDS 2014 1 This research note was written by António Miguel, from the Social Investment Lab, with the scientific supervision of Professor
More informationThe European Social Model and the Greek Economy
SPEECH/05/577 Joaquín Almunia European Commissioner for Economic and Monetary Affairs The European Social Model and the Greek Economy Dinner-Debate Athens, 5 October 2005 Minister, ladies and gentlemen,
More informationarxiv: v2 [q-fin.ec] 1 Sep 2014
arxiv:406.75v2 [q-fin.ec] Sep 204 Income Inequality in the 2st Century A biased summary of Piketty s Capital in the Twenty-First Century Dietrich Stauffer Institute for Theoretical Physics, Cologne University,
More informationTAX HAVENS: THREAT OR ENHANCEMENT TO COMMERCE. By Ingrid Ulloa
TAX HAVENS: THREAT OR ENHANCEMENT TO COMMERCE By Ingrid Ulloa A haven is defined as a shelter or place that provides safety. Tax haven is defined as a place where there is low or no taxes at all, thereby
More informationInequality, Public Wealth, and the Federal Shareholder
Inequality, Public Wealth, and the Federal Shareholder Giacomo Corneo Department of Economics Freie Universität Berlin Berlin, Germany giacomo.corneo@fu-berlin.de October 2015 Abstract: Current trends
More informationTax harmonisation versus tax competition in Europe
SPEECH/05/624 László Kovács European Commissioner for Taxation and Customs Tax harmonisation versus tax competition in Europe Conference «Tax harmonisation and legal uncertainty in Central and Eastern
More informationSovereign Wealth Funds and Long-Term Development Finance: Risks and Opportunities
Sovereign Wealth Funds and Long-Term Development Finance: Risks and Opportunities Alan Gelb, Silvana Tordo and Håvard Halland World Bank Policy Research Working Paper 6776 Natural Resource Charter Annual
More informationInformal Economy and Social Security Two Major Initiatives in India
Informal Economy and Social Security Two Major Initiatives in India K.P. Kannan Member National Commission for Enterprises in the Unorganised Sector Government of India, New Delhi While India has embarked
More informationTHE ROLE OF THE STATE IN ECONOMIC GROWTH PARIS. Idiosyncratic shocks, economic governance of the euro-area and the role of member states
THE ROLE OF THE STATE IN ECONOMIC GROWTH PARIS Idiosyncratic shocks, economic governance of the euro-area and the role of member states A policy brief by Boris Vujčić, Croatian National Bank December 2014
More informationLECTURE 14: THE INEQUALITY OF CAPITAL OWNERSHIP IN EUROPE AND THE USA
LECTURE 14: THE INEQUALITY OF CAPITAL OWNERSHIP IN EUROPE AND THE USA Dr. Aidan Regan Email: aidan.regan@ucd.ie Website: www.aidanregan.com Teaching blog: www.capitalistdemocracy.wordpress.com Twitter:
More informationNew Instruments In Corporate Governance Of EU Bank Groups
MPRA Munich Personal RePEc Archive New Instruments In Corporate Governance Of EU Bank Groups Miroslav Nedelchev 2013 Online at http://mpra.ub.uni-muenchen.de/64551/ MPRA Paper No. 64551, posted 24. May
More informationTHE OECD S REPORT ON HARMFUL TAX COMPETITION JOANN M. WEINER * & HUGH J. AULT **
THE OECD S REPORT ON HARMFUL TAX COMPETITION THE OECD S REPORT ON HARMFUL TAX COMPETITION JOANN M. WEINER * & HUGH J. AULT ** Abstract - In response to pressures created by the increasing globalization
More informationActive Fixed Income: Finding Value amid the Challenges
By Kamyar Hazaveh, April 11, 2018 As passive penetration into fixed income picks up, active managers are increasingly making the case for how active management can benefit fixed income. Arguably, the debate
More informationNEW DESIGNS FOR A NEW CENTURY. Retirement 20/20 June 2, 2010
NEW DESIGNS FOR A NEW CENTURY Retirement 20/20 June 2, 2010 Opening Session Moderator Marcus Robertson Panelists Chris Bone Andrew Peterson Frank Todisco NEW DESIGNS FOR A NEW CENTURY Opening Session:
More informationThe next x level of easy and effective Forex Solutions.
About Us Let us beat the market The next x level of easy and effective Forex Solutions. My System X has been founded in January 2017 by specialists and networkers from Austria, Australia, Germany and Switzerland
More informationMarket Institutions and Income Inequality *
Market Institutions and Income Inequality Randall G. Holcombe Florida State University Christopher J. Boudreaux Texas A&M International University Preliminary Version. Please refer to the final version
More informationSpeech at the International tax symposium "Dynamics of International Tax Competition: Opportunity or Threat?"
Speech at the International tax symposium "Dynamics of International Tax Competition: Opportunity or Threat?" Tax policy coordination for more growth and employment the EU agenda Introduction Ladies and
More informationWhy are tax cuts used as a form of economic policy and why. do they stimulate economic growth?
1 Why are tax cuts used as a form of economic policy and why do they stimulate economic growth? Brandon Shields 2465652 Economics the University of Akron Fall 2011 Abstract This analysis centers around
More informationEUROBAROMETER 71 PUBLIC OPINION IN THE EUROPEAN UNION SPRING This survey was requested and coordinated by Directorate-General for Communication.
Standard Eurobarometer European Commission EUROBAROMETER 71 PUBLIC OPINION IN THE EUROPEAN UNION SPRING 2009 NATIONAL REPORT Standard Eurobarometer 71 / Spring 2009 TNS Opinion & Social EXECUTIVE SUMMARY
More informationWhich? Mid Year Review From 1 July to 31 December 2015
Which? Mid Year Review From 1 July to 31 December 2015 Section one Introduction from the Chair Tim Gardam Chair This mid year review, designed to update our annual report, describes recent developments
More informationDavid M. Woodruff The Russian barter debate: implications for western policy
David M. The Russian barter debate: implications for western policy Policy Memo Original citation:, David M. (1998) The Russian barter debate: implications for western policy. PONARS Policy Memo, Center
More informationTailor made investment approach
WHAT DOES INVESTING MEAN? 03 GUIDE TO INVESTING - Tailor made investment approach 02 GUIDE TO INVESTING Contents WHAT DOES INVESTING MEAN? 3 UNDERSTANDING YOUR NEEDS AND REQUIREMENTS 5 UNDERSTANDING RISK
More informationService de presse Paris, le 29 mai 2013
PRÉSIDENCE DE LA RÉPUBLIQUE Service de presse Paris, le 29 mai 2013 France and Germany Together for a stronger Europe of Stability and Growth France and Germany agree that stability and growth within the
More information/JordanStrategyForumJSF Jordan Strategy Forum. Amman, Jordan T: F:
The Jordan Strategy Forum (JSF) is a not-for-profit organization, which represents a group of Jordanian private sector companies that are active in corporate and social responsibility (CSR) and in promoting
More informationSMART PLANNING FOR SMART PEOPLE. guide to investing
SMART PLANNING FOR SMART PEOPLE guide to investing 2 GUIDE TO INVESTING 3 INTRODUCTION Contents What does investing mean? 4 Understanding your needs and requirements 6 Understanding risk 8 Spreading the
More informationA STUDY OF TRADE SURPLUSES: ASSESSING ALTERNATIVE STRATEGIES FOR RESERVE MANAGEMENT
A STUDY OF TRADE SURPLUSES: ASSESSING ALTERNATIVE STRATEGIES FOR RESERVE MANAGEMENT Student Contributors: Shashank Shekhar, Supriya Shailesh Sehgal Abstract Some nations today have accumulated huge reserves
More informationIncome Inequality and Progressive Income Taxation in China and India, Thomas Piketty and Nancy Qian
Income Inequality and Progressive Income Taxation in China and India, 1986-2015 Thomas Piketty and Nancy Qian Abstract: This paper evaluates income tax reforms in China and India. The combination of fast
More informationSocial Security Its Problems and How to Solve Them
Social Security Its Problems and How to Solve Them Currently social security is running a cash surplus. The surplus will grow smaller when the baby boomers begin to retire, and it will turn into a cash
More informationAnalysis of PPP Project Risk
Abstract Analysis of PPP Project Risk Jing Zhang 1, a, Jiefang Tian 1, b 1 School of North China University of Science and Technology, Tangshan 063210, China. a HappydeZhangJing@163.com, b 550341056@qq.com
More informationGlobal economic inequality: New evidence from the World Inequality Report
WID.WORLD THE SOURCE FOR GLOBAL INEQUALITY DATA Global economic inequality: New evidence from the World Inequality Report Lucas Chancel General coordinator, World Inequality Report Co-director, World Inequality
More informationCapitalism, Inequality & Globalization. Public University of Navarre Pamplona, Spain May 21 st 2018 J. E. Stiglitz
Capitalism, Inequality & Globalization Public University of Navarre Pamplona, Spain May 21 st 2018 J. E. Stiglitz In many ways, most advanced economies not been performing well US worst example, most European
More informationThe Road to Tax Reform
The Road to Tax Reform THE PHILADELPHIA TAX REFORM COMMISSION The Philadelphia Tax Reform Commission was created to recommend methods to reduce taxes of Philadelphia residents, workers and businesses.
More informationTOWARDS SUSTAINABLE AND FAIR PENSIONS
Adopted Policy Paper TOWARDS SUSTAINABLE AND FAIR PENSIONS Introduction We Greens consider pensions as a right, and as a tool for people to reach a healthy and happy balance within and across the various
More informationBRIEF SUBMITTED BY THE QUEBEC ENGLISH SCHOOL BOARDS ASSOCIATION (QESBA) REGARDING. BILL N o 166 An Act to reform the school tax system TO THE
ASSOCIATION DES COMMISSIONS SCOLAIRES ANGLOPHONES DU QUÉBEC QUEBEC ENGLISH SCHOOL BOARDS ASSOCIATION BRIEF SUBMITTED BY THE QUEBEC ENGLISH SCHOOL BOARDS ASSOCIATION (QESBA) REGARDING BILL N o 166 An Act
More informationBerenberg continues expansion
PRESS RELEASE February 12, 2013 Berenberg continues expansion Karsten Wehmeier Head of Corporate Communications Tel. +49 40 350 60-481 Email: Karsten.Wehmeier @Berenberg.de Record net commission income:
More informationIT TAKES TWO TO TANGO: MAKING MONETARY AND FISCAL POLICY DANCE
IT TAKES TWO TO TANGO: MAKING MONETARY AND FISCAL POLICY DANCE Eric M. Leeper Indiana University 12 November 2008 A REMARKABLE TRANSFORMATION Central banks moved from monetary mystique to culture of clarity
More informationTransatlantic Financial Regulatory Coherence Coalition: Financial Regulation in the TTIP
Transatlantic Financial Regulatory Coherence Coalition: Financial Regulation in the TTIP The undersigned associations and business groups today announce the formation of the Transatlantic Financial Regulatory
More informationIs China Socialist? By Barry Naughton, Journal of Economic Perspectives, Winter 2017 Introduction A socialist system should be judged on four
Is China Socialist? By Barry Naughton, Journal of Economic Perspectives, Winter 2017 Introduction A socialist system should be judged on four criteria: Capacity to shape economic outcomes by controlling
More informationBuilding a Capital Markets Union Green Paper
Lausunto 1 (6) Building a Capital Markets Union Green Paper General comments Trade Union Pro welcomes this opportunity to comment on the Commission Green Paper. Firstly, it is important to stress that
More informationSolvency II and the Work of CEIOPS
The Geneva Papers, 2008, 33, (60 65) r 2008 The International Association for the Study of Insurance Economics 1018-5895/08 $30.00 www.palgrave-journals.com/gpp Solvency II and the Work of CEIOPS Thomas
More informationQUESTIONS FOR RACHID SEKAK ECONOMIST
QUESTIONS FOR RACHID SEKAK ECONOMIST Question 1 The decline in oil prices for almost three years has resulted in a weakening of Algeria's financial position, both internally and externally: a significant
More informationThe End of Limited Liability in Brazil
From the SelectedWorks of Bruno Meyerhof Salama January 25, 2012 The End of Limited Liability in Brazil Bruno Meyerhof Salama Available at: https://works.bepress.com/bruno_meyerhof_salama/69/ Cambridge,
More informationAn Assessment of ECB Action
European Parliament COMMITTEE FOR ECONOMIC AND MONETARY AFFAIRS Briefing paper n - February 2005 An Assessment of ECB Action Jean-Paul Fitoussi Executive Summary An assessment of the conduct of monetary
More informationWhat inequality is doing to Aotearoa and how we can move to a more equalitarian society that embraces social justice
What inequality is doing to Aotearoa and how we can move to a more equalitarian society that embraces social justice Community Law Centres Association conference 13 November 2014 Geoff Bertram Institute
More informationSTANDING COMMITTEE ON PROGRAMMES AND FINANCE. Twenty-third Session
Original: English 14 November 2018 STANDING COMMITTEE ON PROGRAMMES AND FINANCE Twenty-third Session STATEMENT BY THE DIRECTOR GENERAL Page 1 STATEMENT BY THE DIRECTOR GENERAL Introduction 1. Distinguished
More informationThe taxonomy of Sovereign Investment Funds
www.pwc.com/sovereignwealthfunds The taxonomy of Sovereign Investment Funds May 2015 SWF s operating in an evolving political environment The increasing influence and relevance of Sovereign Investors (SIs)
More informationPerspective Talanx our strategy
Perspective Talanx our strategy Foreword Dear Reader, Herbert K. Haas Chairman of the Board of Management of Talanx AG In a large international group such as Talanx we need an overall strategy that enables
More informationLecture 3: Income & Wage Taxation Over Time & Across Countries (check on line for updated versions)
Public Economics: Tax & Transfer Policies (Master PPD & APE, Paris School of Economics) Thomas Piketty Academic year 2015-2016 Lecture 3: Income & Wage Taxation Over Time & Across Countries (check on line
More informationThe Economic Effects of a Wealth Tax in Germany
The Economic Effects of a Wealth Tax in Germany Clemens Fuest (ifo, CESifo and LMU), Florian Neumeier (ifo), Michael Stimmelmayr (ETH Zurich and CESifo) and Daniel Stöhlker (ifo) Forthcoming in: ifo DICE
More informationExecutive summary MONETARY POLICY IN 2003
Executive summary The Centre for Monetary Economics (CME) at the BI Norwegian School of Management has for the fifth time invited a committee of economists for Norges Bank Watch with the objective of evaluating
More informationSpending and Growth A response to David Laws. David Howarth
Spending and Growth A response to David Laws David Howarth David Laws has recently received much favourable publicity in the Conservative press for advocating further spending cuts and tax cuts. He wrote:
More informationLet s base discussion of monetary policy on facts
Let s base discussion of monetary policy on facts Page 1 of 5 By Lesetja Kganyago As the Governor of the South African Reserve Bank, I welcome debate on the part played by monetary policy in national development.
More informationDiversifying Africa s Largest Economy PAPER PRESENTED BY DR.OKECHUKWU E.ENELAMAH HONOURABLE MINISTER OF INDUSTRY, TRADE & INVESTMENT
Diversifying Africa s Largest Economy PAPER PRESENTED BY DR.OKECHUKWU E.ENELAMAH HONOURABLE MINISTER OF INDUSTRY, TRADE & INVESTMENT AT 4 TH WTO CHINA ACCESSION ROUNDTABLE. PROTOCOL I will like to thank
More informationA Brief Analysis of the New Trend of International Tax Planning TESCM
Open Journal of Social Sciences, 2018, 6, 52-61 http://www.scirp.org/journal/jss ISSN Online: 2327-5960 ISSN Print: 2327-5952 A Brief Analysis of the New Trend of International Tax Planning TESCM Xianping
More informationI. Ensuring the Basis for an Effective Corporate Governance Framework
OECD Corporate Governance Committee 4 January 2015 Re: OECD Principles of Corporate Governance CFA Institute 1 appreciates the opportunity to comment on the review of the OECD Principles of Corporate Governance.
More informationGlobal Corporate Governance Principles
A. Strategic Objective 02 of 09 What is CalPERS? The California Public Employees' Retirement System (CalPERS) is the largest American public pension fund, with over US $155 billion in assets at the end
More informationRisk Aversion, Stochastic Dominance, and Rules of Thumb: Concept and Application
Risk Aversion, Stochastic Dominance, and Rules of Thumb: Concept and Application Vivek H. Dehejia Carleton University and CESifo Email: vdehejia@ccs.carleton.ca January 14, 2008 JEL classification code:
More informationComments. on the European Commission proposal for a regulation establishing a European Deposit Insurance
Comments on the European Commission proposal for a regulation establishing a European Deposit Insurance Contact: Corinna Streiter Advisor Telephone: +49 30 1663-2540 Fax: +49 30 1663-2599 E-Mail: corinna.streiter@bdb.de
More informationAnnual Media Conference, 7 April 2016
Annual Media Conference, 7 April 2016 Mark Branson Chief Executive Officer Combating money laundering is a duty of every banker Ladies and gentlemen This week the world s journalistic focus has turned
More informationA Financial Perspective on Commercial Litigation Finance. Lee Drucker 2015
A Financial Perspective on Commercial Litigation Finance Lee Drucker 2015 Introduction: In general terms, litigation finance describes the provision of capital to a claimholder in exchange for a portion
More informationLuxembourg High-level Symposium: Preparing for the 2012 DCF
Luxembourg High-level Symposium: Preparing for the 2012 DCF Panel 2: Using aid to help developing countries to promote domestic revenue mobilization 18 October 2011 Contribution by Mr Hans Wollny, Deputy
More information